Moody's (MCO) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Moody's (MCO) is anticipated to report a year-over-year increase in earnings and revenue for the quarter ended June 2025, with consensus estimates at $3.42 EPS (+4.3%) and $1.85 billion revenue (+1.8%). Analysts have revised EPS estimates upward by 1.53% over the past 30 days. Given a positive Zacks Earnings ESP of +2.41% and a Zacks Rank of #3, Moody's is highly likely to surpass consensus EPS estimates, a trend consistent with its performance over the last four quarters, which could positively influence its stock price following the July 23 release.

Analysis

Moody's Corporation (MCO) is positioned for a likely earnings beat in its upcoming quarterly report on July 23. Consensus estimates project year-over-year growth, with revenues expected at $1.85 billion (+1.8%) and EPS at $3.42 (+4.3%). Analyst sentiment has turned more bullish over the last 30 days, reflected in a 1.53% upward revision of the consensus EPS estimate. The key predictive indicator is the company's positive Zacks Earnings ESP of +2.41% combined with a Zacks Rank of #3 (Hold). This pairing historically signals a high probability of an earnings surprise, a thesis supported by Moody's consistent track record of surpassing EPS estimates in all of the last four quarters, including a +7.58% beat in the prior quarter. While the quantitative signals for an EPS beat are strong, the modest forecasted revenue growth of 1.8% places significant emphasis on management's forthcoming discussion of business conditions and forward guidance to determine the sustainability of any potential stock price move.

Key Decisions for Investors

• Given the strong quantitative indicators pointing to an EPS beat, investors could consider tactical long positions ahead of the report to capitalize on a potential positive price reaction.
• Pay close attention to management's commentary on the earnings call, as the modest 1.8% revenue growth forecast makes forward guidance and discussion of underlying business trends critical for the stock's performance beyond the initial release.
• While an earnings beat is probable, investors should note the stock's #3 (Hold) rank and assess whether the quality of the beat and forward outlook justify a longer-term investment thesis.